Correlation Between DAX Index and Event Hospitality
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By analyzing existing cross correlation between DAX Index and Event Hospitality and, you can compare the effects of market volatilities on DAX Index and Event Hospitality and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DAX Index with a short position of Event Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Event Hospitality.
Diversification Opportunities for DAX Index and Event Hospitality
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Event is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Event Hospitality and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Event Hospitality and DAX Index is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DAX Index are associated (or correlated) with Event Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Event Hospitality has no effect on the direction of DAX Index i.e., DAX Index and Event Hospitality go up and down completely randomly.
Pair Corralation between DAX Index and Event Hospitality
Assuming the 90 days trading horizon DAX Index is expected to generate 0.44 times more return on investment than Event Hospitality. However, DAX Index is 2.25 times less risky than Event Hospitality. It trades about 0.18 of its potential returns per unit of risk. Event Hospitality and is currently generating about -0.11 per unit of risk. If you would invest 1,940,520 in DAX Index on September 24, 2024 and sell it today you would earn a total of 47,955 from holding DAX Index or generate 2.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. Event Hospitality and
Performance |
Timeline |
DAX Index and Event Hospitality Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Event Hospitality and
Pair trading matchups for Event Hospitality
Pair Trading with DAX Index and Event Hospitality
The main advantage of trading using opposite DAX Index and Event Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Event Hospitality can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Event Hospitality will offset losses from the drop in Event Hospitality's long position.DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
Event Hospitality vs. Charter Communications | Event Hospitality vs. T MOBILE US | Event Hospitality vs. INTERSHOP Communications Aktiengesellschaft | Event Hospitality vs. Mobilezone Holding AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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